FILING-DATE: 03/18/88 DOCUMENT-DATE: 03/09/88
FILING-DATE: 03/18/88 DOCUMENT-DATE: 03/09/88
COCA COLA CO
TICKER-SYMBOL: KO EXCHANGE: NYS
ONE COCA-COLA PLAZA, N.W.
ATLANTA, GA 30313
404-676-2121
INCORPORATION: DE
INDUSTRY-CLASS: BOTTLED AND CANNED SOFT DRINKS
FYE: 12/31
AUDITOR: ERNST & WHINNEY (SOURCE: 10-K)
STOCK-AGENT: MORGAN SHAREHOLDER SERVICES TRUST COMPANY
PROXY TABLE OF CONTENTS
PAGE
NOTICE OF ANNUAL MEETING 1-3
ELECTION OF DIRECTORS 3-12
EXECUTIVE COMPENSATION 12
EXECUTIVE CASH COMPENSATION 12
OTHER COMPENSATION AND EMPLOYEE BENEFITS 12-17
OTHER INFORMATION 17-20
TABLE-INDEX PAGE
EXECUTIVE CASH COMPENSATION 12
EXECUTIVE CASH COMPENSATION 12
RETIREMENT BENEFITS 13
[*1]
THE COCA-COLA COMPANY
ONE COCA-COLA PLAZA, N.W.
ATLANTA, GEORGIA 30313
ROBERTO C. GOIZUETA
CHAIRMAN OF THE BOARD
AND
CHIEF EXECUTIVE OFFICER
March 9, 1988
Dear Shareholder:
You are cordially invited to attend the Annual Meeting of Shareholders
which will be held on Wednesday, April 20, 1988, at 9:00 a.m., in
Wilmington, Delaware.
The enclosed meeting notice and proxy statement contain details
concerning the business to come before the Meeting. You will note that
the Board of Directors of the Company recommends a vote "FOR" the
election of five Directors to serve until the 1991 Annual Meeting of
Shareholders and "FOR" the ratification of Ernst & Whinney as
independent accountants of the Company for the 1988 fiscal year. Please
sign and return your proxy card in the enclosed envelope at your
earliest convenience to assure that your shares will be presented and
voted at the Meeting even if you cannot attend.
To help us plan for the Meeting, please mark the appropriate box on
your proxy card telling us if you will be attending. Upon our receipt
of the card, an admission card will be sent to you.
A report of the Meeting will be sent to all shareholders as part of the
First Quarter Progress Report.
Roberto C. Goizueta
[*2] [HARDCOPY PAGE 2]
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO THE HOLDERS OF COMMON STOCK
OF THE COCA-COLA COMPANY
The Annual Meeting of Shareholders of The Coca-Cola Company, a Delaware
corporation, will be held at The Corporation Trust Company, 1209
Orange Street, Wilmington, Delaware, on Wednesday, April 20, 1988, at
9:00 a.m., local time, for the following purposes:
1. To elect five Directors to serve until the 1991 Annual Meeting of
Shareholders;
2. To ratify the appointment of Ernst & Whinney as independent
accountants of the Company to serve for the 1988 fiscal year; and
3. To transact such other business as may properly come before the
meeting and any adjournments thereof.
Shareholders of record at the close of business on February 22, 1988
are entitled to notice of and to vote at the meeting and any
adjournments thereof.
A list of shareholders of the Company as of the close of business on
February 22, 1988 will be available for inspection during normal
business hours from April 1 through April 19, 1988 at the officer of
Morris, Nichols, Arsht and Tunnell, 1105 North Market Street,
Wilmington, Delaware.
By Order of the Board of Directors
Donald R. Greene
Secretary
Atlanta, Georgia
March 9, 1988
EACH SHAREHOLDER IS URGED TO EXECUTE AND RETURN THE ENCLOSED PROXY
PROMPTLY. IN THE EVENT A SHAREHOLDER DECIDES TO ATTEND THE MEETING, HE
OR SHE MAY, IF SO DESIRED, REVOKE THE PROXY AND VOTE THE SHARES IN
PERSON.
[*3]
March 9, 1988
PROXY STATEMENT
FOR ANNUAL MEETING OF SHAREHOLDERS
This Proxy Statement is furnished in connection with the solicitation
of proxies on behalf of the Board of Directors of The Coca-Cola Company
(the "Company") to be voted at the Annual Meeting of Shareholders of
the Company to be held at The Corporation Trust Company, 1209 Orange
Street, Wilmington, Delaware, on April 20, 1988, at 9:00 a.m., local
time, and at any adjournments thereof.
All proxies delivered pursuant to this solicitation are revocable at
any time at the option of the persons executing them by giving written
notice to the Secretary of the Company, by delivering a later proxy or
by voting in person at the meeting.
The mailing address of the principal executive offices of the Company
is One Coca-Cola Plaza, N.W., Atlanta, Georgia 30313. The approximate
date on which this Proxy Statement and form of proxy are first being
sent or given to shareholders in March 9, 1988.
All properly executed proxies delivered pursuant to this solicitation
and not revoked will be voted at the meeting in accordance with the
directions given. Regarding the election of Directors to serve until
the 1991 Annual Meeting of Shareholders, in voting by proxy,
shareholders may vote in favor of all nominees or withhold their votes
as to all nominees or withhold their votes as to specific nominees.
With respect to the proposal to ratify the appointment of Ernst &
Whinney as independent accountants, shareholders may vote in favor of
such proposal, against such proposal, or may abstain from voting.
Shareholders should specify their choices on the enclosed form of
proxy. If no specific instructions are given with respect to the
matters to be acted upon, the shares represented by a signed proxy will
be voted FOR the election of all nominees and FOR the proposal to
ratify the appointment of Ernst & Whinney as independent accountants.
The election of Directors will require the affirmative vote of a
plurality of the shares of Common Stock voting in person or by proxy at
the Annual Meeting and all other actions will require the affirmative
vote of a majority of the shares of Common Stock of the Company voting
in person or by proxy at the Annual Meeting.
Only holders of record of shares of Common Stock of the Company at the
close of business on February 22, 1988 are entitled to vote at the
meeting or adjournments thereof. Each holder of record on the record
date is entitled to one vote for each share of Common Stock of the
Company so held. On February 22, 1988 there were 371,750,407 shares of
Common Stock of the Company issued and outstanding.
ELECTION OF DIRECTORS
Board of Directors
The Board of Directors of the Company, pursuant to the By-Laws of the
Company, has determined that the number of Directors of the Company is
fourteen. The Directors are divided into three classes, each class
serving for a period of three years, which has been the practice of the
Company since 1945. Approximately one-third of the members of the Board
of Directors are elected by the shareholders annually. The Directors
whose terms will expire at the 1988 Annual Meeting of Shareholders are
Anne Cox Chambers, Donald F. McHenry, Paul F. Oreffice, James M. Sibley
and James B. Williams, all of
[*4] [HARDCOPY PAGE 2]
whom have been nominated to stand for reelection as Directors at the
1988 Annual Meeting of Shareholders to hold office until the 1991
Annual Meeting of Shareholders and until their successors are elected
and qualified.
Should any one or more of these nominees become unavailable for any
reason, which is not anticipated, the Board of Directors may, unless
the Board by resolution provides for a lesser number of Directors,
designate substitute nominees, in which event the persons named in the
enclosed proxy will vote for the election of such substitute nominee or
nominees.
Recommendation of the Board of Directors Concerning the Election of
Directors
The Board of Directors of the company recommends a vote FOR Anne Cox
Chambers, Donald F. McHenry, Paul F. Oreffice, James M. Sibley and
James B. Williams as Directors to hold office until the 1991 Annual
Meeting of Shareholders and until the successors are elected and
qualified. Proxies received by the Board of Directors will be so voted
unless shareholders specify in their proxy a contrary choice.
NOMINEES FOR ELECTION TO TERM EXPIRING IN 1991
ANNE COX CHAMBERS
Atlanta, Georgia
Director since 1983
Age 68
Mrs. Chambers is a director of Cox Enterprises, Inc., a company engaged
in newspaper publishing, radio and television broadcasting and cable
television. She is also Chairman of Atlanta Newspapers. Mrs. Chambers
served as United States Ambassador to Belgium from 1977 to 1981.
Mrs. Chambers served as a Director of the Company from August 1981 to
June 1982. On March 2, 1983, Mrs. Chambers again was elected as a
Director.
Member of the Compensation Committee and the Committee on Directors of
the Board of Directors of the Company.
Common shares beneficially owned: 1,262
DONALD F. McHENRY
Washington, D.C.
Director since 1981
Age 51
Mr. McHenry is University Research Professor of Diplomacy and
International Affairs at Georgetown University and a principal owner
and President of The IRC Group, Inc., a New York City and Washington,
D.C. consulting firm. Mr. McHenry served as the United States Deputy
Representative to the United Nations from March 1977 to September 1979
and as the Permanent Representative from September 1979 to January
1981. He is a director of Bank of Boston Corporation, Bank of Boston,
International Paper Company, SmithKline Beckman Corporation, Columbia
Pictures Entertainment, Inc. and American Telephone & Telegraph Co.
Chairman of the Public Issues Review Committee and a member of the
Audit Committee and the Committee on Directors of the Board of
Directors of the Company.
Common shares beneficially owned: 734
[PHOTOS OMITTED]
[*5] [HARDCOPY PAGE 3]
PAUL F. OREFFICE
Midland, Michigan
Director since 1985
Age 60
Mr. Oreffice is Chairman of the Board of Directors of The Dow Chemical
Company. He was Chairman, President, Chief Executive Officer and a
director until May 14, 1987 and was Chairman and Chief Executive
Officer until December 1, 1987. He held the positions of President,
Chief Executive Officer and director for more than five years prior to
May 1987. The Dow Chemical Company is a diversified chemical, metals,
plastics and packaging company. He is a director of CIGNA Corporation,
Northern Telecom Ltd. and Morgan Stanley Group Inc.
Member of the Audit and Finance Committees of the Board of Directors of
the Company.
Common shares beneficially owned: 14,000
JAMES M. SIBLEY
Atlanta, Georgia
Director since 1980
Age 68
Mr. Sibley is a partner in the law firm of King & Spalding and a
director of John H. Harland Company, Sun Trust Banks, Inc., Trust
Company of Georgia and Trust Company Bank.
Member of the Executive and Public Issues Review Committees of the
Board of Directors of the Company.
Common shares beneficially owned: 9,411,075
The above includes 6,101,402 shares owned by two foundations of which
Mr. Sibley is one of five trustees, 3,102,360 shares owned by a
foundation of which Mr. Sibley is one of three trustees, 170,806 shares
owned by a private school of which Mr. Sibley is one of five trustees,
21,000 shares owned by a hospital of which he is one of five
trustees, and 10,008 shares owned by an estate of which he is one of
five executors.
JAMES B. WILLIAMS
Atlanta, Georgia
Director since 1979
Age 54
Mr. Williams has been President of Trust Company of Georgia, a bank
holding company, since June 1981, has been Vice Chairman of Sun Trust
Banks, Inc., a bank holding company, since 1984 and President of Sun
Banks, Inc. since 1986, and served as Vice Chairman of the Board of
Directors of Trust Company of Georgia from 1977 to 1981. He is a
director of Genuine Parts Company, Columbia Pictures Entertainment,
Inc., SONAT Inc., Rollins, Inc., RPC Energy Services, Inc. and Sun
Trust Banks, Inc.
Chairman of the Finance Committee and a member of the Executive
Committee of the Board of Directors of the Company.
Common Shares beneficially owned: 1,535,236
The above includes 1,438,536 shares owned by a foundation of which Mr.
Williams is one of five trustees and 95,500 shares owned by a
foundation of which Mr. Williams is one of five trustees.
[PHOTOS OMITTED]
[*6] [HARDCOPY PAGE 4]
INCUMBENT DIRECTORS - TERM EXPIRING 1990
RICHARD J. FLAMSON III
Los Angeles, California
Director since 1984
Age 59
Mr. Flamson is Chairman of the Board of Directors and Chief Executive
Officer of Security Pacific Corporation, a bank holding company, and
Chairman of the Board of Directors of Security Pacific National Bank.
He has held these positions for more than the past five years. He is a
director of General Telephone Company of California, Northrop
Corporation and Santa Fe Southern Pacific Corporation.
Member of the Audit Committee and the Committee on Directors of the
Board of Directors of the Company.
Common shares beneficially owned: 900
DONALD R. KEOUGH
Atlanta, Georgia
Director since 1981
Age 61
Mr. Keough is President and Chief Operating Officer of the Company and
was elected to those positions in March 1981. Previously, he had been
Senior Executive Vice President of the Company since May 1980. Mr.
Keough served as a Vice Chairman of the Company from 1979 to 1980. He
is Chairman of the Boards of Directors of Coca-Cola Enterprises Inc.
and Columbia Pictures Entertainment, Inc. He is a director of Texas
Commerce Bancshares, Inc., IBM World Trade Americas Group and National
Service Industries, Inc.
Member of the Executive Committee of the Board of Directors of the
Company.
Common shares beneficially owned: 511,355
The above includes 20,357 shares credited to Mr. Keough's accounts
under The Coca-Cola Company Thrift Plan, 300,000 shares of restricted
stock awarded to him prior to 1985 under the 1983 Restricted Stock
Award Plan of the Company and 30,000 additional shares of restricted
stock awarded to him by the Board of Directors on August 2, 1982. The
above does not include 35,000 shares which may be acquired upon the
exercise of options which are presently exercisable or which will
become exercisable on or before April 15, 1988.
JAMES T. LANEY
Atlanta, Georgia
Director since 1984
Age 60
Dr. Laney is President of Emory University and has held that position
for more than the past five years. He is a director of Trust Company of
Georgia and Trust Company Bank.
Member of the Public Issues Review Committee of the Board of Directors
of the Company.
Common shares beneficially owned: 1,132
[PHOTOS OMITTED]
[*7] [HARDCOPY PAGE 5]
WILLIAM B. TURNER
Columbus, Georgia
Director since 1980
Age 65
Mr. Turner is Chairman of the Executive Committee of W. C. Bradley Co.
and was Chairman of the Board of Directors and Chief Executive Officer
of W. C. Bradley Co. from August 11, 1982 until August 4, 1987. W. C.
Bradley Co. is involved in warehousing, real estate and farming and is
a wholesaler of building materials and sporting goods and a
manufacturer of barbecue grills and forge products. Mr. Turner is
Chairman of the Board of Directors of Columbus Bank and Trust Company,
a director and Chairman of the Executive Committee of CB&T Bancshares,
Inc. and a director of Georgia Power Company and Total Systems
Services, Inc.
Member of the Executive, Compensation and Finance Committees of the
Board of Directors of the Company.
Common shares beneficially owned: 4,149,912
The above includes 3,582,000 shares owned by a company of which Mr.
Turner is an officer, director and a significant shareholder, and
560,736 shares owned by a foundation of which Mr. Turner is one of
several trustees. The above does not include 28,224 shares owned by a
trust of which Mr. Turner is a beneficiary.
INCUMBENT DIRECTORS - TERM EXPIRING 1989
HERBERT A. ALLEN
New York, New York
Director since 1982
Age 48
Mr. Allen is President, Chief Executive Officer and a director of Allen
& Company Incorporated, a privately held investment banking firm, and
has held those positions for more than the past five years. He is a
director of Columbia Pictures Entertainment, Inc.
Chairman of the Compensation Committee and a member of the Finance and
Executive Committees of the Board of Directors of the Company.
Common shares beneficially owned: 1,197,044
The above includes 55,000 shares owned by a trust of which Mr. Allen is
one of three trustees and 293,490 shares owned by a corporation of
which Mr. Allen is an executive officer, director and a major
shareholder.
[PHOTOS OMITTED]
[*8] [HARDCOPY PAGE 6]
CHARLES W. DUNCAN, JR.
Houston, Texas
Director since 1981
Age 61
Mr. Duncan is Chairman of the Board of Directors of Duncan, Cook & Co.,
a private investment firm. He previously served as a Director of the
Company from 1964 to 1977. Mr. Duncan served as Deputy Secretary of
the United States Department of Defense from 1977 to 1979 and as
Secretary of the Department of Energy from 1979 to 1981. Mr. Duncan is
a director of American Express Company, Cameron Iron Works, Inc., Texas
Eastern Corporation, Chemical New York Corporation, Texas Commerce
Bancshares, Inc. and United Technologies Corporation.
Chairman of the Audit Committee and a member of the Executive Committee
of the Board of Directors of the Company.
Common shares beneficially owned: 873,156
The above does not include 3,000 shares owned by a foundation of which
Mr. Duncan is one of five directors and as to which he disclaims
beneficial ownership.
ROBERTO C. GOIZUETA
Atlanta, Georgia
Director since 1980
Age 56
Mr. Goizueta is Chairman of the Board of Directors and Chief Executive
Officer of the Company and was elected to those positions in March
1981. He served as President of the Company from May 1980 to March
1981. Prior to becoming President of the Company, he was a Vice
Chairman and Executive Vice President of the Company. He is a director
of Ford Motor Company, SONAT Inc., SunTrust Banks, Inc., Trust
Company of Georgia and Trust Company Bank.
Chairman of the Executive Committee of the Board of Directors of the
Company.
Common shares beneficially owned: 8,660,898
The above includes 36,622 shares credited to Mr. Goizueta's accounts
under The Coca-Cola Company Thrift Plan, 600,000 shares of restricted
stock awarded to him prior to 1985 under the 1983 Restricted Stock
Award Plan of the Company, 54,000 additional shares of restricted stock
awarded to him by the Board of Directors on August 2, 1982, 4,662,866
shares owned by a foundation of which Mr. Goizueta is one of five
trustees, and 3,102,360 shares owned by a foundation of which Mr.
Goizueta is one of three trustees. The above does not include 160,250
shares which may be acquired upon the exercise of options which are
presently exercisable or which will become exercisable on or before
April 25, 1988.
JAMES D. ROBINSON, III
New York, New York
Director since 1975
Age 52
Mr. Robinson is Chairman of the Board of Directors and Chief Executive
Officer of American Express Company and has held those positions since
1977. American Express Company is a diversified investment, insurance,
banking and travel service corporation. Mr. Robinson is also a director
of Bristol-Myers Company, General Motors Corporation, Shearson Lehman
Brothers Holdings, Inc. and Shearson Lehman Hutton, Inc.
Chairman of the Committee on Directors and a member of the Public
Issues Review.
Committee of the Board of Directors of the Company.
Common shares beneficially owned: 1,500
The above does not include 689,200 shares owned by two trusts of which
Mr. Robinson is a beneficiary.
[PHOTOS OMITTED]
[*9] [PHOTOS OMITTED]
PETER V. UEBERROTH
New York, New York
Director since 1986
Age 50
Mr. Ueberroth is Commissioner of Major League Baseball, a position he
has held since 1984. Prior to his election as Commissioner of Baseball,
he served for five years as President and Chief Executive Officer of
the Los Angeles Olympic Organizing Committee, the private, nonprofit
organization responsible for the staging and operation of the 1984 Los
Angeles Olympic Games. Mr. Ueberroth is a director of Columbia Pictures
Entertainment, Inc., The Irvine Company and Transamerica Corporation.
Member of the Compensation and Public Issues Review Committees of the
Board of Directors of the Company.
Common shares beneficially owned: 5,000
The above includes 2,000 shares owned by a trust of which Mr. Ueberroth
is one of two trustees. The above shares do not include 10 shares owned
by a member of Mr. Ueberroth's family and as to which he disclaims
beneficial ownership.
No Director or officer beneficially owns more than 1% of the issued and
outstanding Common Stock of the Company other than Messrs. Sibley,
Goizueta and Turner who can each be deemed to beneficially own 2.5%,
2.4% and 1.1%, respectively. All Directors and officers of the Company
as a group (47 persons) beneficially own 19,662,952 shares, which, in
the aggregate, are approximately 5.3% of the Company's issued and
outstanding shares of Common Stock.
Sun Trust Banks, Inc. ("Sun Trust"), 25 Park Place, N.E., Atlanta,
Georgia 30303, a bank holding company, has informed the Company that,
as of December 31, 1987, certain subsidiaries of Sun Trust held either
individually or in various fiduciary and agency capacities an aggregate
of 48,053,586 shares of 12.8% of the Company's Common Stock. Of such
shares 42,020,274 shares of the Company's Common Stock or 11.2% are
held in various fiduciary and agency capacities as to which Sun Trust
and certain of its subsidiaries may be deemed beneficial owners, but as
to which Sun Trust and such subsidiaries disclaim any beneficial
interest. Of such shares held in fiduciary or agency capacities, the
subsidiaries have sole voting power with respect to 21,468,200 shares,
shared voting power with respect to 13,237,268 shares, sole investment
power with respect to 15,142,109 shares and shared investment power
with respect to 19,658,607 shares. As to the shares described above,
Sun Trust has further informed the Company that 39,760,139 of such
shares or 10.6% of the Company's Common Stock are held in various
fiduciary and agency capacities by Trust Company Bank, which is a
direct subsidiary of Trust Company of Georgia and an indirect
subsidiary of Sun Trust. Trust Company Bank owns individually 3,171,744
shares or 0.8% of the Company's Common Stock, Trust Company of Georgia
owns individually 1,526,568 shares or 0.4% of the Company's Common
Stock, and Preferred Surety Corporation, a direct subsidiary of Trust
Company of Georgia and an indirect subsidiary of Sun Trust, owns
individually 1,335,000 shares or 0.4% of the Company's Common Stock as
to which Sun Trust may be deemed a beneficial owner.
Committees of the Board of Directors; Meetings and Compensation of
Directors
In accordance with the By-Laws of the Company, the Board of Directors
has established an Executive Committee, a Finance Committee, an Audit
Committee, a Compensation Committee, a Committee on Directors and a
Public Issues Review Committee. The members of these Committees are
indicated in the immediately preceding section of this Proxy Statement.
The Executive Committee, during the intervals between meetings of the
Board of Directors, may exercise the powers of the Board of Directors
except with respect to a limited number of matters which include
amending the Certificate of Incorporation or the By-Laws of the
Company, adopting an agreement of merger or consolidation for the
Company, and recommending to the shareholders of the Company a merger
of the Company, sale of all or substantially all the assets of the
Company or the dissolution of the Company. The executive Committee met
once in 1987.
[*10] [HARDCOPY PAGE 8]
The Finance Committee reviews and recommends to the Board of Directors
the financial policies of the Company formulated by management with
respect to the financial affairs and accounting policies of the
Company. The Finance Committee has oversight of the budget and of all
the financial operations of the Company. The Finance Committee met six
times in 1987.
The Audit Committee recommends to the Board of Directors the engagement
of the independent accountants of the Company and reviews with the
independent accountants the scope and results of the Company's audits,
the Company's internal accounting controls and the professional
services furnished by the independent accountants to the Company. The
Audit Committee met four times in 1987.
The Compensation Committee reviews and approves all salary
arrangements, annual incentive awards and other remuneration for
officers of the Company. It also is responsible for review of certain
benefit plans and for administration of the stock option plans, the
Long-Term Performance Incentive Plan, the Annual Performance Incentive
Plan, the 1983 Restricted Stock Award Plan and the Performance Unit
Agreements. The Compensation Committee met five times in 1987.
The Committee on Directors recommends to the Board of Directors
candidates for election to the Board of Directors and reviews matters
relating to potential conflicts of interest and Directors' fees and
retainers. The Committee on Directors will consider recommendations for
nominees for directorships submitted by shareholders. The Committee on
Directors met twice in 1987.
The Public Issues Review Committee reviews Company policy and practice
relating to significant public issues of concern to the shareholders,
the Company, the business community and the general public. The Public
Issues Review Committee met once in 1987.
In 1987 the Board of Directors held eight meetings, and Committees of
the Board of Directors held a total of 19 meetings. Overall attendance
at such meetings was 93.5%. All of the Directors attended at least 75%
of the aggregate of all meetings of the Board of Directors and
committees on which they served during 1987.
Officers of the Company who are also Directors do not receive any fee
or remuneration for services as members of the Board of Directors or of
any Committee of the Board of Directors. In 1987 non-management
Directors received a retainer fee of $25,000 per annum, $900 for each
Board meeting attended and $900 for each Committee meeting attended.
The chairman of each Committee received an additional retainer fee of
$3,000 per annum. Non-management Directors may elect to defer receipt
of all or part of their annual retainer fee until a date or dates no
earlier than the year following the year in which their service as a
Director terminates.
In addition, the Company provides certain insurance and retirement
benefits to member of the Board of Directors who are not employees of
the Company, including $30,000 non-contributory term life insurance for
each Director, $100,000 group accidental death and dismemberment
insurance, and $200,000 group travel accident insurance coverage while
travelling on bona fide Company business. Health and dental plans are
also provided. Costs to the Company for 1987 totalled $31,650. The
Directors' Retirement Plan provides that all Directors who are not
employees of the Company and who, upon their retirement from the Board
of Directors, (i) have served at least five years on the Board of
Directors, and (ii) are at least 55 years old on the date of such
retirement, shall be entitled to an annual retirement benefit equal to
the annual retainer then payable to the Directors. Such retirement
benefit will be paid to the retired director, or his or her surviving
spouse, for a period of time not to exceed the retired Director's total
number of years of service on the Board of Directors.
Certain Transactions
The Company has entered into an agreement with The IRC Group, Inc.
("IRC"), a company of which Donald F. McHenry, a Director of the
Company, is President and a substantial shareholder. Under this
agreement, IRC provides consulting services to the Company on
international affairs and business activities. In 1987 the Company paid
IRC $100,000 pursuant to this agreement, and the Company contemplates
utilizing the services of and paying a similar amount to IRC in 1988.
[*11] [HARDCOPY PAGE 9]
James M. Sibley, a Director of the Company, is a partner in the law
firm of King & Spalding. King & Spalding rendered services to the
Company and its subsidiaries in 1987 and the Company has paid fees
aggregating approximately $5,434,730 for such services.
Charles W. Duncan, Jr., a Director of the Company, and two members of
his family were shareholders of The Coca-Cola Bottling Company of
Southern Florida, Inc. which was acquired by the Company in 1986. In
connection with this transaction, the Company owes certain contingent
amounts related to such acquisition. Mr. Duncan's interest in such
amounts is $142,560 and the interest of his family members in such
amounts is $352,002. Mr. Duncan disclaims that he benefits financially
from transactions involving members of his family.
Herbert A. Allen, a Director of the Company, is the President, a
director and a major shareholder of Allen & Company Incorporated
("ACI"). ACI was engaged by Columbia Pictures Entertainment, Inc.
("CPE") to render an opinion to its Board of Directors concerning the
fairness, from a financial point of view, of the transaction (the
"Combination") by which CPE acquired, through a stock transfer, the
assets and operations constituting the Entertainment Business Sector of
the Company (other than certain real estate assets, certain financial
assets and certain data processing assets, which were retained by the
Company) in exchange for 75,210,667 shares of CPE common stock. CPE was
a majority-owned subsidiary of the Company during a period in 1987.
ACI's fees totalled $5,000,000 plus expenses for services rendered in
connection with the Combination and related matters.
ACI provided advisory services to CPE in connection with the
acquisition of Loews Theatre Management Corp. and the private
placements of shares of CPE common stock to Technicolor Holdings Inc.
(a wholly owned subsidiary of MacAndrews & Forbes Incorporated) and
Rank America Inc. (a wholly owned subsidiary of The Rank Organization
Plc). ACI also provided financial advisory services to CPE, including
advice relating to various public limited partnerships. Since January
1, 1987, CPE has paid ACI an aggregate of approximately $4.1 million
for investment banking and financial advisory services (exclusive of
the fee referred to above for the Combination).
ACI has also rendered investment banking and other advice to the
Entertainment Business Sector of the Company under an agreement,
assumed by CPE in connection with the Combination, providing for an
annual retainer of $250,000 through 1989, applied against fees payable
to ACI in connection with specific transactions or assignments. In 1987
ACI received fees from the Entertainment Business Sector of
approximately $444,000 for such services, including fees related to
various public limited partnerships and to the sale of the Walter Reade
Organization and including the retainer described above.
ACI has leased and subleased office space since 1977 in the building
now owned by a subsidiary of the Company and located at 711 Fifth
Avenue, New York, New York. A new lease was entered into in 1985 and
will expire in 1997. In 1987 ACI paid approximately $1,908,085 under
the lease arrangements. In the opinion of management, the terms of the
1985 lease agreement are fair and reasonable and as favorable to the
Company as those which could have been obtained from unrelated third
parties at the time of its execution.
Since a time prior to the Combination, a subsidiary of the Company's
Entertainment Business Sector and a corporation owned by Mr. Allen have
owned a Grumman Gulfstream IIB airplane. Such subsidiary and
corporation hold, respectively, 75% and 25% interests in the airplane
and share proportionately in any income or loss from its operation. The
airplane is available for charter to unrelated parties and to the
owners who are charged for charter of the airplane on the same basis as
unrelated parties.
James D. Robinson, III, a Director of the Company, is Chairman of the
Board of Directors and Chief Executive Officer of American Express
Company and a director of its subsidiary, Shearson Lehman Brothers
Holdings, Inc. ("Shearson"). Shearson provided investment banking
services to the Company and/or certain of its subsidiaries in 1987.
Richard J. Flamson III, a Director of the Company, is Chairman of the
Board of Directors and Chief Executive Officer of Security Pacific
Corporation. Subsidiary banks to Security Pacific Corporation engage in
ordinary course of business banking transactions with the Company and
its subsidiaries, including the making of loans on customary terms.
[*12] [HARDCOPY PAGE 10]
James B. Williams, a Director of the Company, is Vice Chairman of
SunTrust Banks, Inc. ("SunTrust"). Subsidiary banks of Sun Trust
engage in ordinary course of business banking transactions with the
Company and its subsidiaries, including the making of loans on
customary terms. A SunTrust subsidiary leases office space in a
building owned by a Company subsidiary and located at 711 Fifth Avenue,
New York, New York. The lease expires in 1990. In 1987 the Company was
paid approximately $205,759 under the lease. In the opinion of
management, the lease terms are fair and reasonable and as favorable to
the Company as those which could have been obtained from unrelated
third parties at the time of its execution in 1985.
EXECUTIVE COMPENSATION
The following table shows all cash compensation paid or accrued in 1987
for each of the five most highly paid executive officers of the Company
and all executive officers of the Company as a group:
Total Annual
Name of Individual or Capacities in Which Cash
Number of Persons Compensation Was Compensation
in Group Received for 1987
Roberto C. Goizueta Chairman, Board of $1,822,500
Directors and
Chief Executive
Officer(a)
Donald R. Keough President and Chief $1,364,450
Operating Officer
Claus M. Halle Senior Executive $822,000
Vice President
Ira C. Herbert Executive Vice $661,250
President
Francis T. Vincent, Jr. Executive Vice $605,000
President
All Executive Officers as
a group (13 persons) (b) All Executive $9,076,506
Officers
(a) The Company has entered into a deferred compensation agreement with
Mr. Goizueta which became effective in February 1981, was amended in
February 1983 and February 1984 and continues until the termination of
Mr. Goizueta's employment. Under the amended agreement, the Company
credits $15,000 monthly to a deferred account for Mr. Goizueta on the
books of the Company. The amount reported in the table above does not
include $180,000 accrued under this agreement during 1987. Pursuant to
the terms of the amended agreement, amounts credited prior to March 1,
1983 and amounts credited after January 2, 1986, plus interest thereon,
will be paid to him in ten annual installments, commencing one year
after termination of his employment with the Company; the amounts
credited between those dates, plus interest thereon, having been
previously paid. In the event of Mr. Goizueta's disability or death
prior to payment of all amounts deferred under this agreement, the
entire balance will be paid to Mr. Goizueta or his beneficiary.
(b) One member of the group served as an executive officer from March
25, 1987 and another member of the group resigned in March 1987.
Compensation paid by the Company is reflected only for such periods and
includes forgiveness of $290,806 in principal and interest under a note
from an executive officer of the Company, which was entered into in
connection with relocation expenses.
Benefits Pursuant to Compensation Plans
In 1960 the Company established The Coca-Cola Company Thrift Plan (the
"Thrift Plan") to encourage and assist employees in adopting a regular
savings program and to provide additional security for retirement. The
Company contributes to each participant's account maintained under the
Thrift Plan an annual amount equal to 100% of the participant's
contributions to the Thrift Plan but not more than 3% of the
participant's earnings of $15,000, whichever is lower. The matching
contributions by the Company in 1987 with respect to Mr. Goizueta, Mr.
Keough, Mr. Halle, Mr. Herbert, Mr. Vincent and all executive officers
as a group totalled $14,737, $14,540, $14,915, $14,858, $14,854 and
$179,823, respectively.
The Company has also adopted a supplemental, unfunded defined
contribution plan, The Coca-Cola Company Supplemental Thrift Plan,
which provides a benefit to any eligible individual for whom the 3%
matching contribution would otherwise be in excess of the $15,000
maximum under the Thrift Plan. Such
[*13] [HARDCOPY PAGE 11]
difference shall be used to determine the number of theoretical shares
of Company stock which would have been purchased for the account of
such individual in the absence of the limitation. The value of the
accumulated shares at termination of employment shall be paid in cash
to the individual.
The Company also has established The Employee Retirement Plan of the
Coca-Cola Company (the "Retirement Plan") for eligible employees of the
Company and its subsidiaries. The Retirement Plan is a tax-qualified
defined benefit plan and, subject to certain maximum and minimum
provisions, bases pension benefits on a percentage of the employee's
final average compensation (the five highest consecutive calendar years
of compensation out of the employee's last eleven years of credited
service) times the employee's years of credited service. The amount of
the contribution with respect to any specific participant is not
calculated separately by the actuaries for the Retirement Plan. The
accrued expense by the Company is approximately 1.4% of the
"compensation", as defined in the Retirement Plan, of all participants.
The term "compensation" includes salary, overtime, commissions and
performance incentive awards of the participants. In 1987 the Company
accrued $3,456,094 in Retirement Plan expenses.
The Company has also adopted an unfunded supplemental pension plan, The
Coca-Cola Company Supplemental Retirement Plan (the "Supplemental
Retirement Plan"), which, in addition to the other benefits described
below, will provide benefits which are not permitted to be funded or
paid through a tax-qualified plan for certain key employees of the
Company. All executive officers and other key senior officers of the
Company are current participants in the Supplemental Retirement Plan,
Pursuant to one feature of the Supplemental Retirement Plan, a retired
employee will receive 100% of the amount of the retirement benefits, as
calculated under the Retirement Plan, even though that amount exceeds
the limitations on amounts payable from the Retirement Plan imposed by
the Employee Retirement Income Security Act of 1974, which limitations
were $90,000 in 1987. Under the second major feature of the
Supplemental Retirement Plan, certain participants will receive
annually, upon retirement, 20% of the average pay for the preceding
five calendar years, increased 1% for each year of credited service
with the Company up to a maximum of 35 years (i.e., up to 55%). The
amount any participant will receive under the Supplemental Retirement
Plan will be reduced, dollar for dollar, by amounts payable under the
Retirement Plan. Eligibility for retirement benefits under the
Supplemental Retirement Plan commences when the participant has
completed ten years of service with the Company and is 55 years old. If
a participant should die prior to retirement, his or her surviving
spouse will receive accrued benefits under the Supplemental Retirement
Plan, less any other survivor income benefits payable under the
Retirement Plan.
The following table sets forth the annual retirement benefits payable
under the Retirement Plan and the Supplemental Retirement Plan upon
retirement at age 65 based on an employee's assumed average annual
compensation for the five-year period preceding retirement and assuming
actual retirement in 1988. The benefits listed in the table are not
subject to any reduction for Social Security or other offset amounts.
Assumed Average Annual Years of Credited Service with
Compensation for Five-Year the Company
Period Preceding Retirement 20 Years 30 Years 40 Years
$500,000 $200,000 $250,000 $296,661
1,000,000 400,000 500,000 596,661
1,500,000 600,000 750,000 896,661
2,000,000 800,000 1,000,000 1,196,661
2,500,000 1,000,000 1,250,000 1,496,661
3,000,000 1,200,000 1,500,000 1,796,661
Compensation accrued in 1987 for the individuals named in the cash
compensation table on page 10 included for the computation of benefits
payable under the Retirement Plan and the Supplemental Retirement Plan
and not set forth in the cash compensation table, together with the
number of years of credited service under these Plans, is as follows:
Mr. Goizueta, $680,670 (33.5 years); Mr. Keough, $426,142 (37.3 years);
Mr. Halle, $270,440 (37.3 years); Mr. Herbert, $245,862 (22.3 years);
and Mr. Vincent, $238,145 (4.7 years).
[*14] [HARDCOPY PAGE 12]
Certain executive officers of the Company as well as certain other key
employees of the Company and certain of its subsidiaries are entitled
to receive payments of substantially all medical, dental and vision
care expenses incurred by such employees and their dependents to the
extent not reimbursed by the Company's other medical and dental plans
up to a maximum payment for each such employee and his dependents of
$20,000 per annum. In connection with this plan, in 1987, the Company
paid premiums on behalf of Mr. Goizueta, Mr. Keough, Mr. Halle, Mr.
Herbert, Mr. Vincent and all executive officers as a group in the
amount of $3,723, $2,963, $3,723, $3,723, $2,963 and $38,871,
respectively.
Effective January 1, 1984, the Board of Directors adopted a
Supplemental Long-Term Disability Plan (the "Supplemental Plan") for
certain executive officers of the Company as well as certain other key
employees of the Company and certain of its subsidiaries. The
Supplemental Plan is substantially similar to the Long-Term Disability
Income Plan applicable to salaried employees of the Company (the "Basic
Plan"), except that under the Supplemental Plan, performance incentive
awards are included in the computation of the maximum monthly benefit.
Under the Supplemental Plan, monthly benefits, including amounts paid
under the Basic Plan, may not exceed $15,000.
During 1987 stock options to purchase shares of Common Stock of the
Company and stock appreciation rights were awarded under the Company's
1983 Stock Option Plan (the "1983 Plan") and the 1987 Stock Option Plan
(the "1987 Plan"). In 1987 stock options and stock appreciation rights
were exercised under the 1979 Stock Option Plan (the "1979 Plan") and
the 1983 Plan, and stock options were exercised under other stock
option plans of the Company (collectively, the "Stock Option Plans").
In general, stock appreciation rights granted by the Company permit any
officer of the Company who holds a stock option to which the stock
appreciation rights relate to surrender the related option, in whole or
in part, and to receive from the Company, for each right to purchase a
share of Common Stock pursuant to the related stock option surrendered,
an amount equal to the excess of the fair market value of a share of
Common Stock of the Company on the date the related stock option is
surrendered over the option price, as provided in the stock option
agreement.
The Stock Option Plans are administered by the Compensation Committee
of the Board of Directors of the Company (the "Compensation
Committee"). The Compensation Committee is authorized to grant options
to any officer, including officers who are also Directors of the
Company, and to other key employees of the Company and its affiliates.
The option price must be not less than 100% of the fair market value of
the Company's Common Stock on the date the option is granted. Each
stock option terminates on the date fixed by the Compensation Committee
which may not be more than ten years from the date of grant. Payment
for stock purchased on the exercise of a stock option must be made in
full at the time the stock option is exercised. Under the 1979 Plan,
payment must be in cash and, under the 1987 and 1983 Plans, in cash or,
upon the prior approval of, and upon the conditions established by, the
Compensation Committee, in shares of Common Stock of the Company. The
Company's acceptance of its Common Stock in payment of exercises of
stock options could permit the successive, immediate exercises of
options. In such case, the optionee would receive the "appreciation
value" (i.e., the increase in value equal to the aggregate market value
of shares subject to the option over the aggregate exercise price of
the option in the form of shares of Common Stock having a fair market
value equal to the appreciation value). While permitted under the terms
of the 1983 and 1987 Plans, such successive immediate exercise of
options is not currently permitted by the Compensation Committee
although payment of the option price with shares of Company Common
Stock is permitted under the 1983 and 1987 Plans by the Compensation
Committee. Stock options awarded under the Stock Option Plans may not
be exercised during the first twelve months after the date of grant.
Thereafter, stock options awarded under the 1983 Plan may be exercised
only to the extent of a fraction, the numerator of which is the number
of whole months from the date of grant and the denominator of which is
thirty-six. For stock options granted under the 1987 Plan, such
denominator is thirty-six or the number of months over which the right
to exercise the option in full accrues, if less than thirty-six.
The following sets forth for those persons named in the table on page
10 and for all present executive officers as a group, information,
where applicable, on stock options and stock appreciation rights
granted and exercised during 1987.
[*15] [HARDCOPY PAGE 13]
In 1987 stock options granted to all present executive officers as a
group totalled 170,000 of which Mr. Goizueta and Mr. Keough received
100,000 and 70,000, respectively, with an average option price of
$35.50 per share. Stock appreciation rights were granted in tandem with
the above shares. Options were exercised in 1987 by Mr. Goizueta, Mr.
Keough, Mr. Halle, Mr. Herbert and all present executive officers as a
group for shares totalling 36,000, 75,900, 51,750, 25,395, and 267,510,
respectively. The net realized value (market value less exercise price
on the date of exercise) of options exercised, which for Mr. Goizueta,
Mr. Keough, Mr. Halle, Mr. Herbert and all present executive officers
as a group totalled $969,094, $1,755,025, $1,451,305, $965,508, and
$7,119,631, respectively.
The above does not include information regarding stock options granted
to, or the exercise of stock options by, any optionee while such
optionee was not an executive officer of the Company, but includes
options to purchase shares of treasury stock granted outside any stock
option plan of the Company. The terms of these options are generally
the same as the terms of options awarded under the Company's stock
option plans described above. The above includes stock options granted
under the Company's stock option plans in replacement of stock options
previously granted under other Company Stock Option Plans, which
previously granted stock options were cancelled as a condition to such
later grant, as permitted under those plans. No adjustment is made for
the stock options replaced.
Effective January 1, 1982, the Company established a Long-Term
Performance Incentive Plan which is administered by the Compensation
Committee. The Compensation Committee will award incentive compensation
to certain key senior officers and executives of the Company if
performance targets set for the Company, as measured by the average
return on equity and the compounded annual growth in net income from
continuing operations over three years, are met. Earnings targets
reflect the long-range financial goals of the Company and do not depend
on improvement in the performance of the Company in one year over the
previous year.
Subject to continued employment of the participant, unless death,
disability or retirement occurs, one-half of each award earned will be
paid at the close of each three-year performance period, although a
participant will have the opportunity to receive this portion of an
award upon retirement. Payment of the other half of each award, the
"Restricted Award", will be deferred for two years and will be subject
to forfeiture if the participant's employment by the Company terminates
for any reason other than death, disability or retirement in such
two-year period. The participant will be entitled to receive interest
on the Restricted Award, calculated at rates not in excess of
prevailing market interest rates, and may elect to defer receipt of the
Restricted Award until retirement. Awards under the Long-Term
Performance Incentive Plan are included in the computation of benefits
under the Retirement Plan, the Supplemental Retirement Plan, the Thrift
Plan and the Supplemental Plan.
All executive officers and certain other key senior officers of the
Company are current participants in the Long-Term Performance Incentive
Plan. Amounts to which a right to payment was received pursuant to the
Long-Term Performance Incentive Plan during 1987 and which are no
longer subject to forfeiture by Mr. Goizueta, Mr. Keough, Mr. Halle,
Mr. Herbert, Mr. Vincent and all executive officers as a group include
$360,045, $225,400, $138,561, $125,961, $125,961 and $1,864,652 which
amounts represents the first half of the award pursuant to the 1985-87
Plan to which those named had the right to receive payment in 1987 and
also include $243,000, $151,875, $93,373, $84,898, $84,898 and $985,927
which represent the lapse of the risk of forfeiture of the Restricted
Award pursuant to the 1983-85 Plan, respectively. Amounts for all
executive officers as a group include payments to one person who became
an executive officer in October 1986 and was paid pursuant to the
long-term bonus plan of an operating division of the Company which is
generally similar to the Long-Term Performance Incentive Plan.
On March 7, 1979, the Company established the Annual Performance
Incentive Plan administered by the Compensation Committee and a
management committee (the "Management Committee") appointed by the
Compensation Committee. The Management Committee consists of three
officers of the Company, one of whom is a Director. Under the Annual
Performance Incentive Plan, cash awards are made to participants based
upon the individual's contribution to the attainment of overall Company
objectives and goals, of predetermined annual operating unit goals and
of individual goals for each participant. The group of key employees of
the Company eligible to participate in the Annual Performance Incentive
Plan is broader than the group of Company and division officers who
participate in the Long-Term
[*16] [HARDCOPY PAGE 14]
Performance Incentive Plan. All awards to officers of the Company are
made by the Compensation Committee. Awards to all other participants
are made by the Management Committee.
Awards may be paid to participants annually during the year following
the Annual Performance Incentive Plan year. Payments made under the
Annual Performance Incentive Plan in February 1988 are included in the
cash compensation table on page 10. A participant may elect to defer
receipt until retirement. Awards under the Annual Performance Incentive
Plan are included in the computation of benefits under the Retirement
Plan, the Supplemental Retirement Plan, the Thrift Plan and the
Supplemental Plan. Awards for 1987 to Mr. Goizueta, Mr. Keough, Mr.
Halle, Mr. Herbert, Mr. Vincent and all executive officers as a group
were $950,000, $650,000, $335,000, $195,000, $75,000 and $3,550,000.
The 1983 Restricted Stock Award Plan of The Coca-Cola Company, as
amended (the "Stock Award Plan") is administered by the Compensation
Committee. The Compensation Committee approves the officers and key
employees of the Company and its affiliated companies who will be
granted awards and determines the number of shares of Common Stock of
the Company to be awarded and the terms and conditions of each award.
The maximum number of shares of stock issuable under the Stock Award
Plan is 3,000,000 (which number has been adjusted to reflect the
three-for-one stock split which occurred in June 1986) and the maximum
percentage of shares of stock issuable to any individual employee is
20% of the total number of shares authorized for issuance. The Stock
Award Plan does not require that any participant make any payment for
any shares of Common Stock of the Company awarded under the Stock Award
Plan. Each award unconditionally vests when a participant retires, dies
or becomes disabled. The entire award is subject to forfeiture if the
participant leaves the employment of the Company for any other reason.
The Compensation Committee may modify or remove this risk of forfeiture
for any participant whose employment will terminate within sixty days
after such decision to modify or remove this risk of forfeiture, if, in
the Compensation Committee's view, there exist exceptional
circumstances. During the period the shares are subject to forfeiture,
the participant is entitled to receive dividends and other
distributions on the stock and is entitled to vote on all matters
submitted to shareholders. The participant may not sell, transfer,
pledge or otherwise attempt to convey any interest in or to the shares
while he or she is an employee of the Company or an affiliate of the
Company. The Compensation Committee may modify or remove this
prohibition for any participant whose employment will terminate within
sixty days after such decision to modify or remove this prohibition.
Within sixty days after a participant's retirement, disability or
death, the Company will pay a sum of money to the participant or his or
her beneficiary which will serve to reimburse the participant or his or
her beneficiary for a significant portion of the Federal, state and
local income taxes imposed on the award. The Stock Award Plan will
terminate when all of the shares authorized thereunder have been issued
and are no longer subject to forfeiture or at such earlier time as
determined by the Compensation Committee. In 1987 the number of shares
of Common Stock awarded under the Stock Award Plan to Mr. Halle, Mr.
Herbert, Mr. Vincent and all executive officers as a group totalled
18,000, 15,000, 14,000 and 128,000, respectively.
In 1985 the Company entered into Performance Unit Agreements, whereby
certain officers will be granted cash awards based on the difference
in the market value of 555,000 shares of the Company's Common Stock at
the measurement dates and the base price of $20.63, the market value
as of January 2, 1985. No payments were made pursuant to the
Performance Unit Agreements in 1987.
The 1986 Compensation Deferral and Investment Program of the Company,
as has been reported in previous years, permitted salaried employees of
the Company and certain of its subsidiaries, whose base annual salary
was at least $50,000, to defer, on a one-time basis, up to $50,000 of
the compensation earned between May 1986 and April 1987. Amounts
deferred will be credited with annual compound interest at a variable
annual rate of at least 16%. The rate for 1987 was 17.96%. The amounts
credited will be paid out when the participant no longer is an employee
of the Company or, at the option of the participant, (a) as a level
annuity payable from the date of retirement until attainment of age 80,
or (b) split between pre-retirement payments commencing no earlier than
1993 and a level annuity payable from the date of retirement until
attainment of age 80.
In 1981 Mr. Vincent was awarded 50,000 shares of Columbia Pictures
Industries, Inc. ("CPI") common stock under a CPI restricted stock
award plan. Pursuant to an agreement between Mr. Vincent and the
Company, upon the merger of CPI with a subsidiary of the Company, Mr.
Vincent elected to
[*17] [HARDCOPY PAGE 15]
receive cash for those restricted shares. Fifty percent of the proceeds
were retained by the Company and on June 21, 1982 were converted into
54,342 "deemed shares" of Company Common Stock, subject to certain
restrictions which lapsed on June 21, 1987. Pursuant to the terms of
such agreement, in 1983, 1984 and 1985, Mr. Vincent received cash
payments in amounts equal to the value of 2/3 of the deemed shares. In
1987 he was paid $30,432 as dividends on 54,342 deemed shares (adjusted
for the June 1986 three-for-one stock split), which were all of his
remaining deemed shares. On January 4, 1988, he was paid $2,547,563,
which included both the value of his 54,342 deemed shares as of June
21, 1987 and earned interest from June 21, 1987 through December 31,
1987.
COCA-COLA ENTERPRISES INC. AND COLUMBIA PICTURES ENTERTAINMENT, INC.
The Company holds approximately 49% of the issued and outstanding
common stock of each of Coca-Cola Enterprises Inc. ("CCE") and Columbia
Pictures Entertainmaent, Inc. ("CPE").
Certain Transactions with CCE and CPE
Herbert A. Allen, a Director of the Company, is the President, a
director and a major shareholder of Allen & Company Incorporated
("ACI"). ACI served as a co-managing underwriter in connection with the
March 1987 offering by CCE of $300,000,000 of its 8 3/4% Debentures due
2017, and $300,000,000 of its 7 1/8% Notes due 1997 in connection with
which ACI received approximately $504,000 in underwriting discounts and
commissions. In January 1988, ACI also served as co-managing
underwriter for CPE in connection with its offering of $250,000,000 of
its 10 5/8% Senior Subordinated Debentures due 2018 and $325,000,000 of
its 9 7/8% Senior Subordinated Notes due 1988 in connection with which
ACI received approximately $911,000 in underwriting discounts and
commissions. This offering occurred after the Company had reduced its
ownership interest in CPE to 49%.
James D. Robinson, III, a Director of the Company, is Chairman of the
Board of Directors and Chief Executive Officer of American Express
Company and a director of its subsidiary, Shearson Lehman Brothers
Holdings, Inc. ("Shearson"). Shearson provided investment banking
services to CCE in 1987.
Richard J. Flamson III, a Director of the Company, is Chairman of the
Board of Directors and Chief Executive Officer of Security Pacific
Corporation.
Subsidiary banks of Security Pacific Corporation engage in ordinary
course of business banking transactions with CPE, CCE and their
subsidiaries, including the making of loans on customary terms.
James B. Williams, a Director of the Company, is Vice Chairman of Sun
Trust Banks, Inc. ("Sun Trust"). Subsidiary banks of Sun Trust engage
in ordinary course of business banking transactions with CCE and its
subsidiaries, including the making of loans on customary terms.
Ownership of Securities in CCE and CPE
Mr. Goizueta may be deemed to be the beneficial owner of 796,775 shares
of common stock of CPE which includes 285,417 shares owned by a
foundation of which Mr. Goizueta is one of three trustees and 428,983
shares owned by a foundation of which Mr. Goizueta is one of five
trustees. Such amount also includes 3,343 shares credited to his
accounts under The Coca-Cola Company Thrift Plan. Mr. Goizueta may be
deemed to be the beneficial owner of 5,000 shares of common stock of
CCE.
Mr. Keough may be deemed to be beneficial owner of 47,022 shares of
common stock of CPE which includes 1,851 shares credited to his
accounts under The Coca-Cola Company Thrift Plan and 3,000 shares of
common stock of CCE.
Mr. Allen may be deemed to be the beneficial owner of 764,547 shares of
common stock of CPE which includes 126,655 shares owned by Mr. Allen,
599,501 shares owned by ACI, 1,409 shares owned by certain members of
Mr. Allen's family, 31,922 shares into which $475,000 principal amount
of CPE's 7 1/8% Convertible Subordinated Debentures due July 15, 2006
owned by ACI are convertible at a conversion price of $14.88 per share
and 258,500 warrants to purchase 1/2 share of CPE common stock of which
208,500 warrants are owned by ACI. Mr. Allen may be deemed to be the
beneficial owner of 3,686,858 shares of common stock of CCE which
includes 69,900 shares owned by Mr. Allen, 3,507,258 owned by ACI and
109,700 owned by a trust of which Mr. Allen is one of two trustees.
[*18] [HARDCOPY PAGE 16]
Mrs. Chambers may be deemed to be the beneficial owner of 116 shares of
common stock of CPE.
Mr. Duncan may be deemed to be the beneficial owner of 80,328 shares of
common stock of CPE, which does not include 276 shares owned by a
foundation of which Mr. Duncan is one of five directors and as to which
he disclaims beneficial ownership, and 60,000 shares of common stock of
CCE.
Mr. Flamson may be deemed to be the beneficial owner of 82 shares of
common stock of CPE.
Dr. Laney may be deemed to be the beneficial owner of 103 shares of
common stock of CPE.
Mr. McHenry may be deemed to be the beneficial owner of 567 shares of
common stock of CPE and 500 warrants to purchase one share of CPE
common stock.
Mr. Oreffice may be deemed to be the beneficial owner of 920 shares of
common stock of CPE.
Mr. Robinson may be deemed to be the beneficial owner of 138 shares of
common stock of CPE which does not include 63,406 shares owned by two
trusts of which Mr. Robinson is a beneficiary.
Mr. Sibley may be deemed to be the beneficial owner of 865,816 shares
of common stock of CPE which includes 505 shares owned by Mr. Sibley,
561,328 shares owned by two foundations of which Mr. Sibley is one of
five trustees, 285,417 shares owned by a foundation of which Mr.
Sibley is one of three trustees, 15,714 shares owned by a private
school of which Mr. Sibley is one of five trustees, 1,932 shares owned
by a hospital of which he is one of five trustees and 920 shares owned
by an estate of which he is one of five executors.
Mr. Turner may be deemed to be the beneficial owner of 381,790 shares
of common stock of CPE which includes 643 shares owned by Mr. Turner,
16 shares owned by his wife, 329,544 shares owned by a company of which
Mr. Turner is an officer, director and a significant shareholder and
51,587 shares owned by a foundation of which Mr. Turner is one of
several trustees. This does not include 2,596 shares owned by a trust
of which Mr. Turner is a beneficiary.
Mr. Ueberroth may be deemed to be the beneficial owner of 460 shares of
common stock of CPE which shares include 184 shares owned by a trust of
which Mr. Ueberroth is a trustee and 1,000 shares of common stock of
CCE. The CCE shares do not include 3,000 shares owned by a foundation
of which Mr. Ueberroth is one of six board members nor 100 shares owned
by a member of his family and as to which he disclaims beneficial
ownership.
Mr. Williams may be deemed to be the beneficial owner of 141,241 shares
of common stock of CPE which includes 110 shares owned by Mr. Williams
and 141,131 shares owned by two foundations of which Mr. Williams is
one of five trustees.
No director or officer of the Company beneficially owns more than 1% of
the issued and outstanding common stock of CCE other than Mr. Allen,
who may be deemed to beneficially own 2.6%. All directors and officers
of the Company as a group (47 persons) beneficially own 3,761,979
shares, which, in the aggregate, are approximately 2.7% of CCE's issued
and outstanding shares of common stock.
No director or officer of the Company beneficially owns more than 1% of
the issued and outstanding common stock of CPE. All directors and
officers of the Company as a group (47 persons) beneficially own
2,401,964 shares, which, in the aggregate, are approximately 2.2% of
CPE's issued and outstanding shares of common stock.
RATIFICATION OF APPOINTMENT OF INDEPENDENT ACCOUNTANT
The Board of Directors of the Company, upon the recommendation of the
Audit Committee, has appointed the firm of Ernst & Whinney to serve as
independent accountants of the Company for the fiscal year ending
December 31, 1988 subject to ratification of this appointment by the
shareholders of the Company. Ernst & Whinney has served as independent
accountants of the Company for many years and is considered by
management of the Company to be well qualified. The Company has been
advised by that firm that neither it nor any member thereof has any
financial interest, direct or indirect, in the Company or any
subsidiaries in any capacity.
[*19] [HARDCOPY PAGE 17]
One or more representatives of Ernst & Whinney will be present at this
year's Annual Meeting of Shareholders, will have an opportunity to make
a statement is he or she desires to do so and will be available to
respond to appropriate questions.
Ratification of the appointment of the independent accountants requires
the affirmative vote of a majority of the shares of Common Stock of the
Company voting in person or by proxy at the Annual Meeting of
Shareholders. If the shareholders should not ratify the appointment of
Ernst & Whinney, the Board of Directors will reconsider the
appointment.
Recommendation of the Board of Directors
The Board of Directors of the Company recommends a vote FOR the
proposal to ratify the appointment of Ernst & Whinney as independent
accountants of the Company for the 1988 fiscal year. Proxies received
by the Board of Directors will be so voted unless shareholders specify
in their proxies a contrary choice.
EXPENSES OF SOLICITATION
All expenses incurred in connection with the solicitation of proxies
will be borne by the Company. The Company will reimburse brokers,
fiduciaries and custodians for their costs in forwarding proxy
materials to beneficial owners of Common Stock held in their names.
Solicitation may be undertaken by mail, telephone and personal contract
by Directors, officers and employees of the Company without additional
compensation.
SHAREHOLDERS' PROPOSALS FOR 1989 ANNUAL MEETING
Proposals of shareholders intended to be presented at the 1989 Annual
Meeting of Shareholders must be received by the Company on or before
November 9, 1988 to be eligible for inclusion in the Company's proxy
statement and proxy relating to that meeting.
OTHER INFORMATION
Management does not know of any matters other than those referred to in
the accompanying Notice of Annual Meeting of Shareholders which may
properly come before the meeting. As to any other matter or proposal
that may properly come before the meeting, it is intended that proxies
solicited will be voted in accordance with the discretion of the proxy
holders.
The form of proxy and the proxy statement have been approved by the
Board of Directors and are being mailed and delivered to shareholders
by its authority.
DONALD R. GREENE
Secretary
Atlanta, Georgia
March 9, 1988
The Annual Report to Shareholders of the Company for the fiscal year
ended December 31, 1987, which includes financial statements, has been
mailed to shareholders of the Company. The Annual Report does not form
any part of the material for the solicitation of proxies.
[*20]
PROXY
The Coca-Cola Company
This Proxy is Solicited on Behalf of the Board of Directors of the
Coca-Cola Company
The undersigned hereby (i) appoints Herbert A. Allen, James T. Laney
and William B. Turner, jointly and severally, proxies with full power
of substitution, to vote all shares of Common Stock of The Coca-Cola
Company owned of record by the undersigned, and (ii) directs Trust
Company Bank, Trustee under The Coca-Cola Company Thrift Plan, or
Manufacturers Hanover Trust Company, Trustee under the Columbia
Pictures Savings & Stock Ownership Plan, to vote in person or by proxy
all shares of Common Stock of The Coca-Cola Company allocated to any
accounts of the undersigned under such Plans, and which the undersigned
is entitled to vote on all matters which may come before the 1988
Annual Meeting of Shareholders to be held at The Corporation Trust
Company, 1209 Orange Street, Wilmington, Delaware, on April 20, 1988,
at 9:00 a.m., local time, and any adjournments thereof, unless
otherwise specified herein.
Election of Directors, Nominees:
Anne Cox Chambers, Donald F. McHenry, Paul F. Oreffice, James M.
Sibley and James B. Williams.
You are encouraged to specify your choices by marking the appropriate
boxes, SEE REVERSE SIDE, but you need not mark any boxes if you wish
to vote in accordance with the Board of Directors' recommendations. The
proxies cannot vote your shares unless you sign and return this card.
SEE REVERSE SIDE
(X) Please mark your votes as in this example.
0282
This proxy when properly executed will be voted in the manner directed
herein. If no direction is made, this proxy will be voted "FOR" all of
the Board of Directors' nominees and "FOR" proposal 2.
The Board of Directors recommends a vote FOR proposals 1 and 2.
1. Election of Directors (see reverse)
FOR ( )
WITHHELD ( )
For, except vote withheld from the following nominee(s)
2. Ratify the appointment of Ernst & Whinney as Independent Accountants
FOR ( )
AGAINST ( )
ABSTAIN ( )
Do you plan to attend the Annual Meeting?
YES
NO
The Coca-Cola Company
Please sign exactly as name appears hereon. Joint owners should each
sign. When signing as attorney, executor, administrator, trustee or
guardian, please give full title as such.
................
................
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